Welcome!

Mobile IoT Authors: Liz McMillan, Progress Blog, John Katrick, Pat Romanski, Derek Weeks

News Feed Item

O-Net Communications Achieved Business Turnaround in 2H 2013



- Revenue Surged 57.8% to HK$404.9 million Compared to 1H2013 and Net Profit at HK$36.2 million
- FY2013 Full Year Revenue at HK$661.5 million
- Continues to Gain Market Share in the optical component market
- Diversified to Automation Business for Sustainable Growth


Hong Kong, Mar 20, 2014 - (ACN Newswire) - O-Net Communications (Group) Limited ("O-Net Communications" or the "Group") (stock code: 877), a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications networking systems, achieved profitable results for the year ended 31 December 2013 ("FY2013").

The Group achieved business turnaround in the second half of 2013 ("2H2013") as the global telecommunications market gradually recovered. Revenue of 2H2013 was HK$404.9 million, representing a 57.8% rise compared to the first half of 2013. The growth was mainly attributable to the Group's efforts in strengthening leadership in the optical component market through enhanced coverage of key customers, as well as revenue contribution from the new automation business. 2H2013 gross profit margin rose to 33.5% (1H2013: 29.6%). The Group also returned to profitability during 2H2013 with a net profit of HK$36.2 million, thus it was able to achieve a profitable annual results.

For FY2013, the Group's revenue totaled HK$661.5 million (2012: HK$727.4 million), with gross profit margin at 32.0% (2012: 41.3%) as the Group adopted a competitive pricing strategy for its products. Profit attributable to equity holders was HK$13.4 million, while non-GAAP net profit was HK$30.2 million.

The Group's cash position remained strong with more than HK$456.9 million in cash as at 31 December 2013, as it maintained a strong operating cash inflow of HK$37.3 million during FY2013.

Mr Austin Na, Co-Chairman and CEO of O-Net Communications, said, "We are glad to see that O-Net has grown stronger during the year against the volatile market conditions. The group continued to enhance R&D capability for a strong product pipeline including next-generation active products for telecoms and data-communications markets, and our market share continued to grow. At the same time, we have tapped into automation business which has achieved initial success and generated revenue contribution. We are in a better position to capture market opportunities arising."

Business Review
Strengthened R&D Capability for Next Generation Optical Networking Products. The Group continued to invest in R&D to ensure sustainable growth of its core optical networking business. As a result of enhanced R&D efforts, new technologies were developed and a series of high-growth next-generation active products for telecommunications and data-communications markets are under development which expanded the Group's portfolio from traditional optical component market to cover access and datacom market by subsystems, active optical components and modules. The Group has also partnered with renowned overseas companies to facilitate the development such as partnered with VIS from Germany to develop proprietary high speed optical interconnects, and also cooperated with a Canadian company, ArtIC Photonics, Inc., to develop proprietary photonic integrated circuit chips.

Automated New Plant Ensures Higher Efficiency and Capacity. The Group has established a new manufacturing facility in Pingshan, Shenzhen with an area of 100,000m2. The highly automated new plant not only enhanced the operational efficiency, but also provided more capacity to support new business development such as automation.

Seize the Huge Opportunities in Automation Industry. Commenced in 2012, the automation business has started to contribute revenue of HK$7.5 million in FY2013 with a satisfactory gross profit margin of 39.5%. The Group has started to deliver customized high value-added automation equipment to electronic cigarette, mobile phone and home appliance manufacturers. In addition, the automation business division has developed automation equipment for producing heating coils and began to supply the heating coils produced by these equipment to the electronic cigarette makers in China from the last quarter of 2013. As a results, the Group has quickly established itself as a leading supplier of automation solutions for the electronic cigarette manufacturers in one-year's time.

Prospects
Optical Networking Business on Fast Track Riding on Bright Industry Outlook. The optical components market is expected to reach its historic peak at US$10.5 billion in 2018. This is driven by the continued strong demand for 40G and 100G components and modules to support increasing data traffic and new cloud-based service opportunities. Strong market outlook favors the growth of O-Net as a key industry player. Leveraging its core strengths in R&D capability and world-class talents, the Group will start to deliver a series of high-growth next-generation active products for telecom and data-com markets within 2014 to further strengthen its market leadership and boost margins.

Diversification Fuels Business Growth. The Group is positive that the automation business will continue to grow as the domestic manufacturing industries are in transition to cope with rising labour costs and recruitment difficulties. It generated great demand for automation equipment delivering high value. The Group will continue to dedicate resources on identified industries, as well as to develop standard products for different automated production systems with intelligence camera in the pipeline. In addition, apart from supplying heating coils, the Group also aims to become a leading supplier of components and automation solutions in the electronic-cigarette industry as the potential size of the electronic cigarettes market is anticipated to reach more than 10% of the total tobacco industry by 2020, which shall help drive the Group's business growth in the near future.

At the same time, following the set up a joint venture with OPDI Technologies A/S, the Group will explore opportunities in the fast growing touch panel business.The first-generation sample touch panel is expected to be completed by 2014 and the joint venture is anticipated to generate income from overseas customers this year. Together with other potential areas, the Group is confident that new businesses will help to broaden income stream and improve profitability in the near future as well as in the longer term.

Mr Na concluded, "Looking forward, we will continue to bolster our efforts to develop innovative products with an aim to enhance O-Net's competitiveness in the optical networking industry. Meanwhile, with the initial success in the automation business, we will dedicate more resources in identified high-growth market segments, targeting at a well diversified revenue structure. Through innovation and diversification, the Group's business will achieve sustainable and balanced growth for the best interest of our shareholders."

About O-Net Communications (Group) Limited

O-Net Communications (Group) Limited, with headquarters in Shenzhen, was listed on the Stock Exchange of Hong Kong Limited on 29 April 2010. It is a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications network systems. To broaden the product offerings through innovation and diversification, the Group started the research and development ("R&D") of certain active optical networking products used in the next generation telecommunication and data-communication systems. The Group has a high quality client base including Alcatel-Lucent, Huawei as well as contract manufacturers to Ciena and Infinera. Building on its unique vertically integrated business model, the Group designs, manufactures and delivers cost-competitive customised products and solutions based upon individual customers' product needs and specifications. Apart from strengthening the core optical networking businesses, the Group adopted a new strategy "Diversity for Growth" and identified certain new businesses included automation and touch panel with an aim to become a leading high-tech company.

Source: O-Net Communications (Group) Limited

Contact:
Strategic Financial Relations Limited
Heidi So   +852 2864 4826   [email protected] 
Maggie Au   +852 2864 4815   [email protected]
Agnes Luo   +852 2864 4851   [email protected]
Fax:  +852 2527 1196 / 2804 2789




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.